NRS 645H.340 Administrative
fine for engaging in certain conduct without certificate of registration,
permit or other authorization; procedure for imposition of fine; judicial
review; exceptions. [Replaced in revision by NRS
645H.705.]

NRS 645H.350 Deposit
of fees and administrative fines; financial support of Division.

NRS 645H.550 Payment
of child support: Submission of certain information by applicant; grounds for
denial of certificate of registration or permit; duty of Division. [Effective
until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]

NRS 645H.550 Payment
of child support: Submission of certain information by applicant; grounds for
denial of certificate of registration or permit; duty of Division. [Effective
on the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings and expires by limitation 2 years after that
date.]

NRS 645H.705 Administrative
fine for engaging in certain conduct without certificate of registration,
permit or other authorization; procedure for imposition of fine; judicial
review; exceptions.

NRS 645H.710 Disciplinary
or other action for failure to pay money owed to Division.

NRS 645H.720 Suspension
of certificate of registration or permit for failure to pay child support or
comply with certain subpoenas or warrants; reinstatement of certificate of
registration or permit. [Effective until 2 years after the date of the repeal
of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support proceedings.]

NRS 645H.730 Knowledge
of associate or employer of violation by asset management company or asset
manager; penalties.

NRS 645H.740 Expiration,
revocation or surrender of certificate of registration or permit does not
prohibit disciplinary action against holder of certificate of registration or
permit.

NRS 645H.010Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 645H.020 to 645H.150, inclusive, have the meanings ascribed to
them in those sections.

NRS 645H.030“Asset management” defined.“Asset
management” means to manage, oversee or direct actions taken to maintain any
real property, including, without limitation, any actions taken to preserve,
restore or improve the value and to lessen the risk of damage to the property
on behalf of a client before a foreclosure sale or in preparation for
liquidation of real property owned by the client pursuant to a foreclosure
sale.

NRS 645H.040“Asset management company” defined.“Asset
management company” means a person, limited-liability company, partnership,
association or corporation which, for compensation and pursuant to a
contractual agreement, power of attorney or other legal authorization, engages
in asset management on behalf of:

1. A bank, mortgage broker, mortgage
banker, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift company
or savings and loan association, or any subsidiary thereof which is authorized
to transact business in this State;

1. A bank, mortgage broker, mortgage
banker, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift
company or savings and loan association, or any subsidiary thereof that is
authorized to transact business in this State;

NRS 645H.080“Foreclosure sale” defined.“Foreclosure
sale” means a sale of real property to enforce an obligation secured by a
mortgage or lien on the property, including, without limitation, the exercise
of a trustee’s power of sale pursuant to NRS
107.080.

NRS 645H.090“Homeowner” defined.“Homeowner”
means the owner of record of a residence, including, without limitation, the
owner of record of a residence in foreclosure at the time the notice of the
pendency of an action for foreclosure is recorded pursuant to NRS 14.010 or the notice of default and
election to sell is recorded pursuant to NRS
107.080.

NRS 645H.120“Real property in foreclosure” defined.“Real
property in foreclosure” includes, without limitation, a residence in
foreclosure or commercial real property against which there is an outstanding
notice of the pendency of an action for foreclosure recorded pursuant to NRS 14.010 or notice of default and
election to sell recorded pursuant to NRS
107.080.

1. Not more than four family dwelling
units, one of which the homeowner or a tenant of the homeowner occupies as his
or her principal place of residence; or

2. A single-family residential unit,
including, without limitation, a condominium, townhouse or home within a subdivision,
if the unit is sold, leased or otherwise conveyed unit by unit, regardless of
whether the unit is part of a larger building or parcel that consists of more
than four units,

Ê against
which there is an outstanding notice of the pendency of an action for
foreclosure recorded pursuant to NRS 14.010
or notice of default and election to sell recorded pursuant to NRS 107.080.

NRS 645H.150“Service report” defined.“Service
report” means a written report on a form prescribed by the Division which is
provided by an asset management company or asset manager and which lists the
specific services performed on real property for a client.

1. The provisions of this chapter which
require a certificate of registration or permit do not apply to a person or
broker who has a current permit to engage in property management pursuant to chapter 645 of NRS.

2. A person or broker who has a permit to
engage in property management pursuant to chapter
645 of NRS may engage in the business of asset management if the provision
of asset management services is included in the property management agreement
entered into pursuant to NRS 645.6056.

3. Except as otherwise provided in subsection
1, a person or broker who engages in the business of asset management must
comply with the provisions of this chapter and the recordkeeping requirements
of chapter 645 of NRS.

4. The provisions of this chapter do not
apply to:

(a) A person who is a regular, full-time employee
of a bank, mortgage broker, mortgage banker, mortgage servicer as that term is
defined in NRS 645F.063, credit
union, thrift company or savings and loan association, or any subsidiary
thereof.

(b) A person who takes possession of property
from a defendant in connection with a judicial proceeding for eminent domain
brought pursuant to chapter 37 of NRS.

NRS 645H.170Applicability.[Replaced
in revision by part of NRS 645H.160.]

ADMINISTRATION

NRS 645H.280Duties of Division; restrictions on employees of Division.

1. The Division shall administer the
provisions of this chapter and may employ legal counsel, investigators and
other professional consultants necessary to discharge its duties pursuant to
this chapter.

2. An employee of the Division must not be
employed by or have an interest in any business that manages residences in
foreclosure or other assets.

3. An employee of the Division shall not
act as an asset manager or as an agent for an asset management company.

1. Regulations prescribing a standard of
practice and code of ethics for registered asset management companies. The
regulations must include, without limitation, provisions establishing the
degree of care that must be exercised by a reasonably prudent registered asset
management company.

2. Such other regulations as are necessary
for the administration of this chapter.

NRS 645H.300Authority for Division to conduct business electronically;
regulations; fees; use of unsworn declaration; exclusions.

1. The Administrator may adopt regulations
which establish procedures for the Division to conduct business electronically
pursuant to title 59 of NRS with persons who are regulated pursuant to this
chapter and with any other persons with whom the Division conducts business.
The regulations may include, without limitation, provisions establishing fees
to pay the costs of conducting business electronically with the Division.

2. In addition to the provisions of NRS 719.280, if the Division conducts
business electronically with a person and a law requires a signature or record
to be notarized, acknowledged, verified or made under oath, the Division may
allow the person to substitute a declaration that complies with the provisions
of NRS 53.045 to satisfy the legal
requirement.

3. The Division may refuse to conduct
business electronically with a person who has failed to pay any money which the
person owes to the Division.

1. The Division may inspect any service
report, contractual agreement, power of attorney or other legal authorization
entered into by an asset management company and a client to ensure compliance
with the provisions of this chapter.

2. The Division shall adopt regulations
pertaining to those inspections.

NRS 645H.320Records: Maintenance by Division; general provisions governing
public inspection and confidentiality.

1. The Division shall maintain a record
of:

(a) Persons whose applications for registration
have been denied;

(b) Formal disciplinary proceedings and any
investigations conducted by the Division which result in the initiation of
those proceedings; and

(c) Rulings or decisions upon complaints filed with
the Division.

2. Except as otherwise provided in this
section and NRS 645H.330, records kept in the
office of the Division pursuant to this chapter are open to the public for
inspection pursuant to regulations adopted by the Division. Except as otherwise
provided in NRS 239.0115, the Division
may keep confidential, unless otherwise ordered by a court any criminal and financial
records of an asset management company or applicant for a certificate of
registration.

1. Except as otherwise provided in this
section and NRS 645H.320, a complaint filed with
the Division, all documents and other information filed with the Division
relating to the complaint and all documents and other information compiled as a
result of an investigation conducted to determine whether to initiate
disciplinary action are confidential and may be disclosed in whole or in part
only as necessary in the course of administering this chapter or to a licensing
board or agency or any other governmental agency, including, without
limitation, a law enforcement entity, that is investigating a person who holds
a certificate of registration or permit issued pursuant to this chapter.

2. The complaint or other document filed
by the Division to initiate disciplinary action and all documents and
information considered by the Division when determining whether to impose
discipline are public records.

NRS 645H.340Administrative fine for engaging in certain conduct without
certificate of registration, permit or other authorization; procedure for
imposition of fine; judicial review; exceptions.[Replaced
in revision by NRS 645H.705.]

NRS 645H.350Deposit of fees and administrative fines; financial support of
Division.

1. All fees and administrative fines
received by the Division pursuant to this chapter must be deposited with the State
Treasurer for credit to the State General Fund.

2. Money for the support of the Division
in carrying out the provisions of this chapter must be provided by direct
legislative appropriation and be paid out on claims as other claims against the
State are paid.

NRS 645H.360Disposition of money collected.If
the Division imposes an administrative fine or collects a fee for registering
an asset management company or issuing or renewing a permit to an asset
manager, the Division shall deposit the amount collected with the State
Treasurer for credit to the State General Fund. The Division may present a
claim to the State Board of Examiners for recommendation to the Interim Finance
Committee if money is needed to pay an attorney’s fee or the cost of an
investigation, or both.

1. The Attorney General shall render to
the Division opinions upon questions of law relating to the construction or
interpretation of this chapter, or arising in the administration thereof,
submitted to the Attorney General by the Division.

2. The Attorney General shall act as the
attorney for the Division in all actions and proceedings brought against or by
the Division pursuant to any of the provisions of this chapter.

1. A person who wishes to be registered as
an asset management company in this State must file a written application with
the Division upon a form prepared and furnished by the Division and pay the fee
required pursuant to NRS 645H.560. An application
must:

(a) State the name, residence address and
business address of the applicant and the location of each principal office and
branch office at which the asset management company will conduct business
within this State;

(b) State the name under which the applicant will
conduct business as an asset management company;

(c) List the name, residence address and business
address of each person who will, if the applicant is not a natural person, have
an interest in the asset management company as a principal, partner, officer,
director or trustee, specifying the capacity and title of each such person;

(d) Include a complete set of the fingerprints of
the applicant or, if the applicant is not a natural person, a complete set of
the fingerprints of each person who will have an interest in the asset
management company as a principal, partner, officer, director or trustee, and written
permission authorizing the Division to forward the fingerprints to the Central
Repository for Nevada Records of Criminal History for submission to the Federal
Bureau of Investigation for its report; and

(e) Include a statement signed by the applicant
attesting that the applicant has read and understands the provisions of NRS 645H.520 and 645H.680
to 645H.770, inclusive.

2. Except as otherwise provided in this
chapter, the Division shall issue a certificate of registration to an applicant
as an asset management company if:

(a) The application is verified by the Division
and complies with the requirements of this chapter.

(b) The applicant and each general partner,
officer or director of the applicant, if the applicant is a partnership,
corporation or unincorporated association:

(1) Submits satisfactory proof to the
Division that he or she has a good reputation for honesty, trustworthiness and
integrity and displays competence to transact the business of an asset
management company in a manner which safeguards the interests of the general
public.

(2) Has not been convicted of, or entered
a plea of nolo contendere to, a felony relating to the practice of asset
management or any crime involving fraud, misrepresentation or moral turpitude.

(3) Has not made a false statement of
material fact on his or her application.

(4) Has not had a professional license
that was issued in this State or any other state, district or territory of the
United States or any foreign country suspended or revoked within the 10 years
immediately preceding the date of application.

(5) Has not violated any provision of this
chapter, a regulation adopted pursuant thereto or an order of the
Administrator.

(c) The applicant certifies that he or she:

(1) Has a process in place to verify that
each employee or independent contractor that performs services as directed by
the asset management company or an asset manager employed by or under contract
with the asset management company is the holder of a license in good standing
in this State to perform the services for which the asset management company
will use the employee or independent contractor.

(2) Has a process in place to review the
work of each independent contractor that performs services as directed by the
asset management company or an asset manager employed by or under contract with
the asset management company to ensure that those services are conducted in
accordance with all applicable laws and regulations of this State.

(3) Will maintain a detailed record of
each request for service it receives and the independent contractor who
fulfilled that request.

(d) The applicant submits proof that he or she
possesses all business registrations, licenses and permits required to do
business in this State.

NRS 645H.490Certificate of registration: Maintenance of insurance or acting
as self-insurer; minimum limits of liability; proof.

1. Before issuing any certificate of
registration or annual renewal thereof, the Division shall require satisfactory
proof that the asset management company:

(a) Is covered by a policy of insurance written
by an insurance company authorized to do business in this State which is
sufficient to reimburse real property owners for, without limitation, any
damage to real property in foreclosure, the wrongful disposal of property or
wrongful eviction; or

(b) Possesses and will continue to possess
sufficient means to act as a self-insurer against that liability.

2. Every asset management company shall
maintain the policy of insurance or self-insurance required by this section.
The registration of every such asset management company is automatically
suspended 10 days after receipt by the asset management company of a notice
from the Division that the required insurance is not in effect, unless
satisfactory proof of insurance is provided to the Division within that period.

3. Proof of insurance or self-insurance
must be in such a form as the Division may require.

NRS 645H.500Certificate of registration: Expiration; renewal.A certificate of registration issued pursuant
to this chapter expires each year on the date of its issuance, unless it is
renewed. To renew the certificate of registration, the registrant must submit
to the Division on or before the expiration date:

1. An application for renewal;

2. The fee required to renew the
certificate of registration pursuant to NRS 645H.560;
and

NRS 645H.510Asset management company that is not natural person to designate
natural person as qualified employee.

1. If an asset management company is not a
natural person, the company must designate a natural person as a qualified
employee to act on behalf of the asset management company.

2. As used in this section, “qualified
employee” means:

(a) A director, officer, member, employee,
manager or trustee of a partnership, corporation or limited-liability company
designated by the partnership, corporation or limited-liability company to act
on the behalf of the partnership, corporation or limited-liability company; or

(b) A person designated by a sole proprietorship
who satisfies the requirements set forth in subsection 2 of NRS 645H.480.

NRS 645H.520Authorized services of asset management company; manner in which
asset management company may dispose of certain personal property; resolution
of disputes.

1. Subject to the provisions of NRS 645H.770, the services an asset management company
may provide include, without limitation:

(a) Securing real property in foreclosure once it
has been determined to be abandoned and all notice provisions required by law
have been complied with;

(b) Providing maintenance for real property in
foreclosure, including landscape and pool maintenance;

(c) Cleaning the interior or exterior of real
property in foreclosure;

(d) Providing repair or improvements for real
property in foreclosure; and

(e) Removing trash and debris from real property
in foreclosure and the surrounding property.

2. An asset management company may dispose
of personal property abandoned on the premises of a residence in foreclosure or
left on the premises after the eviction of a homeowner or a tenant of a
homeowner without incurring civil or criminal liability in the following
manner:

(a) The asset management company shall reasonably
provide for the safe storage of the property for 30 days after the abandonment
or eviction and may charge and collect the reasonable and actual costs of
inventory, moving and storage before releasing the property to the homeowner or
the tenant of the homeowner or his or her authorized representative rightfully
claiming the property within that period. The asset management company is
liable to the homeowner or the tenant of the homeowner only for the asset
management company’s negligent or wrongful acts in storing the property.

(b) After the expiration of the 30-day period,
the asset management company may dispose of the property and recover his or her
reasonable costs from the property or the value thereof if the asset management
company has made reasonable efforts to locate the homeowner or the tenant of
the homeowner, has notified the homeowner or the tenant of the homeowner in
writing of his or her intention to dispose of the property and 14 days have
elapsed since the notice was given to the homeowner or the tenant of the homeowner.
The notice must be mailed to the homeowner or the tenant of the homeowner at
the present address of the homeowner or the tenant of the homeowner and, if
that address is unknown, then at the last known address of the homeowner or the
tenant of the homeowner.

(c) Vehicles must be disposed of in the manner
provided in chapter 487 of NRS for abandoned
vehicles.

3. Any dispute relating to the amount of
the costs claimed by the asset management company pursuant to paragraph (a) of
subsection 2 may be resolved using the procedure provided in subsection 7 of NRS 40.253.

1. A person in this State who is employed
or independently contracted as an asset manager by an asset management company
shall apply to the Division for a permit to engage in asset management and pay
a fee of $75 for the issuance of the permit.

2. An applicant for a permit must:

(a) At his or her own expense:

(1) Arrange to have a complete set of
fingerprints taken by a law enforcement agency or other authorized entity
acceptable to the Division; and

(2) Submit to the Division:

(I) A completed fingerprint card and
written permission authorizing the Division to submit the applicant’s
fingerprints to the Central Repository for Nevada Records of Criminal History
for submission to the Federal Bureau of Investigation for a report on the
applicant’s background and to such other law enforcement agencies as the
Division deems necessary; or

(II) Written verification, on a form
prescribed by the Division, stating that the fingerprints of the applicant were
taken by a law enforcement agency or other authorized entity and directly
forwarded by electronic or other means to the Central Repository and that the
applicant has given written permission to the law enforcement agency or other authorized
entity to submit the fingerprints to the Central Repository for submission to
the Federal Bureau of Investigation for a report on the applicant’s background
and to such other law enforcement agencies as the Division deems necessary;

(b) Submit to the Division a signed statement
attesting that the applicant has read and understands the provisions of NRS 645H.520 and 645H.680
to 645H.770, inclusive; and

(c) Comply with all other requirements
established by the Division for the issuance of a permit.

3. The Division may:

(a) Unless the applicant’s fingerprints are
forwarded pursuant to sub-subparagraph (II) of subparagraph (2) of paragraph
(a) of subsection 2, submit those fingerprints to the Central Repository for
submission to the Federal Bureau of Investigation and to such other law enforcement
agencies as the Division deems necessary; and

(b) Request from each such agency any information
regarding the applicant’s background as the Division deems necessary.

NRS 645H.540Permit to engage in asset management: Expiration and renewal.A permit issued pursuant to NRS 645H.530 expires 1 year after the date of
issuance, unless it is renewed. To renew the permit, the registrant must submit
to the Division on or before the date of expiration:

NRS 645H.550Payment of child support: Submission of certain information by
applicant; grounds for denial of certificate of registration or permit; duty of
Division. [Effective until the date of the repeal of 42 U.S.C. § 666, the
federal law requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses for
child support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]

1. In addition to any other requirements
set forth in this chapter, an applicant for the issuance of a certificate of
registration as an asset management company or a permit to engage in asset
management shall:

(a) Include the social security number of the
applicant in the application submitted to the Division.

(b) Submit to the Division the statement
prescribed by the Division of Welfare and Supportive Services of the Department
of Health and Human Services pursuant to NRS
425.520. The statement must be completed and signed by the applicant.

2. The Division shall include the
statement required pursuant to subsection 1 in:

(a) The application or any other forms that must
be submitted for the issuance or renewal of the certificate of registration or
permit; or

(b) A separate form prescribed by the Division.

3. A certificate of registration or permit
may not be issued or renewed by the Division pursuant to this chapter if the
applicant:

(a) Fails to submit the statement required pursuant
to subsection 1; or

(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.

4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Division shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the applicant
may take to satisfy the arrearage.

NRS 645H.550Payment of child support:
Submission of certain information by applicant; grounds for denial of
certificate of registration or permit; duty of Division. [Effective on the date
of the repeal of 42 U.S.C. § 666, the federal law requiring each state to
establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings and expires by limitation 2 years after that
date.]

1. In addition to any other requirements
set forth in this chapter, an applicant for the issuance of a certificate of
registration as an asset management company or a permit to engage in asset
management shall submit to the Division the statement prescribed by the Division
of Welfare and Supportive Services of the Department of Health and Human
Services pursuant to NRS 425.520. The
statement must be completed and signed by the applicant.

2. The Division shall include the
statement required pursuant to subsection 1 in:

(a) The application or any other forms that must
be submitted for the issuance or renewal of the certificate of registration or
permit; or

(b) A separate form prescribed by the Division.

3. A certificate of registration or permit
may not be issued or renewed by the Division pursuant to this chapter if the
applicant:

(a) Fails to submit the statement required
pursuant to subsection 1; or

(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.

4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Division shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the applicant
may take to satisfy the arrearage.

(Added to NRS by 2011, 2824;
A 2011,
2833; 2013,
3823, effective on the date of the repeal of 42 U.S.C. § 666, the federal
law requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses for
child support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings)

NRS 645H.560Fees.

1. A person must pay the following fees
for the issuance or renewal of a certificate of registration as an asset
management company:

(a) For the issuance of a certificate of
registration, an application fee of $2,000 for the principal office and a fee
of $500 for the issuance of the initial certificate of registration.

(b) For the renewal of a certificate of
registration, a fee of $500.

2. The following fees must be charged by
and paid to the Division:

For each issuance of a duplicate
registration or permit................................... $50

For each change in the name or
location of a business..................................... 20

For each change in the name or
business address of a holder of a permit..... 20

NRS 645H.670Authority of Administrator to conduct certain investigations;
authority of Division to take certain disciplinary actions.

1. The Administrator may investigate the
actions of any asset management company or asset manager or any person who acts
in any such capacity within this State.

2. The provisions of this chapter do not
limit the authority of the Division to take disciplinary action against a
registered asset management company or permit holder for a violation of any of
the provisions of this chapter or any regulation adopted pursuant to this
chapter, nor does the payment in full of all obligations through any insurance
proceeds nullify or modify the effect of any other disciplinary proceeding
brought pursuant to the provisions of this chapter or any regulation adopted
pursuant to this chapter.

NRS 645H.680Hearing officers.In
any proceeding pursuant to this chapter, the Administrator may appoint hearing
officers from the Department of Business and Industry who shall act as his or
her agents and conduct any hearing or investigation which may be conducted by
the Administrator pursuant to the provisions of this chapter.

1. An applicant for a certificate of
registration pursuant to NRS 645H.480 or a permit
pursuant to NRS 645H.530 shall file with the
Division, on a form prescribed by a regulation adopted by the Division, an
irrevocable consent appointing the Administrator as his or her agent for
service of process in a noncriminal proceeding against the applicant, a successor
or personal representative which arises under this chapter or a regulation
adopted pursuant to this chapter after the consent is filed, with the same
force and validity as if served personally on the person filing the consent.

2. A person who has filed an irrevocable
consent in accordance with subsection 1 in connection with a previous
application for a certificate of registration or permit is not required to file
an additional consent.

3. If a person, including a nonresident of
this State, engages in conduct prohibited or made actionable by this chapter or
a regulation adopted pursuant to this chapter and the person has not filed an
irrevocable consent to service of process in accordance with subsection 1,
engaging in the conduct constitutes the appointment of the Administrator as the
person’s agent for service of process in a noncriminal proceeding against the
person, a successor or personal representative which arises out of the conduct.

4. Service under subsection 1 or 3 may be
made by leaving a copy of the process in the Office of the Administrator, but
it is not effective unless:

(a) The plaintiff, who may be the Administrator,
sends notice of the service and a copy of the process by registered or
certified mail, return receipt requested, to the defendant or respondent at the
address set forth in the consent to service of process or, if no consent to
service of process has been filed, at the last known address, or takes other
steps which are reasonably calculated to give actual notice; and

(b) The plaintiff files an affidavit of
compliance with this subsection in the proceeding on or before the return day
of the process, if any, or within such further time as the court, or the
Administrator in a proceeding before the Administrator, allows.

5. Service as provided in subsection 4 may
be used in a proceeding before the Administrator or by the Administrator in a
proceeding in which the Administrator is the moving party.

6. If the process is served under
subsection 4, the court, or the Administrator in a proceeding before the
Administrator, may order continuances as may be necessary to afford the
defendant or respondent a reasonable opportunity to defend.

1. The Division may require an asset
management company or asset manager to pay an administrative fine of not more
than $10,000 for each violation he or she commits or suspend, revoke, deny the
renewal of or place conditions upon his or her certificate of registration or
permit, or impose any combination of those actions, at any time if the asset
management company or asset manager has, by false or fraudulent representation,
obtained a certificate of registration or permit, or the asset management
company or asset manager, whether or not acting as such, is found guilty of:

(a) Making any material misrepresentation.

(b) Making any false promises of a character
likely to influence, persuade or induce.

(c) Failing to maintain, for review and audit by
the Division, each service report, contractual agreement, power of attorney or
other legal authorization entered into with a client and governed by the
provisions of this chapter.

(d) Accepting or collecting any money which
belongs to another person.

(e) Violating any order of the Division, any
agreement with the Division, any of the provisions of this chapter or chapters 116, 119,
119A, 119B,
645, 645A
or 645C of NRS or any regulation adopted
pursuant thereto.

(f) Paying a commission, compensation or a
finder’s fee to any person for performing the services of an asset management
company or asset manager who does not have a certificate of registration or
permit in this State.

(g) A conviction of, or the entry of a plea of
guilty, guilty but mentally ill or nolo contendere to:

(1) A felony relating to the practice of
the asset management company or asset manager; or

(h) Gross negligence or incompetence in
performing any act for which the person is required to hold a certificate of
registration, permit or license pursuant to this chapter or chapter 119, 119A,
119B or 645
of NRS.

(i) Any other conduct which constitutes
deceitful, fraudulent or dishonest dealing.

(j) Any conduct which took place before the
person obtained his or her certificate of registration or permit which was
unknown to the Division and which would have been grounds for denial of the
certificate of registration or permit had the Division been aware of the
conduct.

(k) Knowingly allowing any person whose
certificate of registration or permit has been revoked to act as an asset
management company or asset manager with or on behalf of the asset management
company or asset manager.

(l) Failing to maintain insurance at the level
required pursuant to this chapter.

(m) Failing to produce any document, book or
record in his or her possession, or under his or her control, concerning any
real estate transaction or asset management service under investigation by the
Division.

2. The Division may take action pursuant
to this section against a person who is subject to this chapter for the
suspension or revocation of a certificate of registration issued to an asset
management company or a permit issued to an asset manager by any other
jurisdiction.

3. The Division may take action pursuant
to this section against any person who:

(a) Is a registered asset management company or
holds a permit as an asset manager pursuant to this chapter; and

(b) In connection with any property for which the
person is engaging in the business of asset management pursuant to this
chapter:

(2) Has been notified in writing by the
appropriate governmental agency of a potential violation of NRS 244.360, 244.3603 or 268.4124 and has failed to inform the
owner of the property of such notification; or

(3) Has been directed in writing by the
owner of the property to correct a potential violation of NRS 244.360, 244.3603 or 268.4124 and has failed to correct the
potential violation, if such corrective action is within the scope of the
person’s duties pursuant to a contract power of attorney or other legal authorization
entered into with a client.

4. The Division shall maintain a log of
any complaints that it receives relating to activities for which the Division
may take action against a person holding a certificate of registration or
permit to engage in the business of asset management pursuant to this chapter.

5. An order that imposes discipline and
the findings of fact and conclusions of law supporting that order are public
records.

NRS 645H.705Administrative fine for engaging in certain conduct without
certificate of registration, permit or other authorization; procedure for
imposition of fine; judicial review; exceptions.

1. In addition to any other remedy or
penalty, the Division may impose an administrative fine against any person who
knowingly:

(a) Engages or offers to engage in any activity
for which a certificate of registration or permit or any other authorization is
required pursuant to this chapter, or any regulation adopted pursuant thereto,
if the person does not hold the required certificate of registration or permit
or has not received the required authorization; or

(b) Assists or offers to assist another person in
the commission of a violation described in paragraph (a).

2. If the Division imposes an
administrative fine against a person pursuant to this section, the amount of
the administrative fine must not exceed the amount of any gain or economic
benefit that the person derived from the violation or $5,000, whichever is
greater.

3. In determining the appropriate amount
of the administrative fine, the Division shall consider:

(a) The severity of the violation and the degree
of any harm that the violation caused to other persons;

(b) The nature and amount of any gain or economic
benefit that the person derived from the violation;

(c) The person’s history or record of other
violations; and

(d) Any other facts or circumstances that the
Division deems to be relevant.

4. Before the Division may impose the
administrative fine, the Division must provide the person with notice and an
opportunity to be heard.

5. The person is entitled to judicial
review of the decision of the Division in the manner provided by chapter 233B of NRS.

6. The provisions of this section do not
apply to a person who engages or offers to engage in activities within the
provisions of this chapter if:

(a) A specific statute exempts the person from
complying with the provisions of this chapter with regard to those activities;
and

(b) The person is acting in accordance with the
exemption while engaging or offering to engage in those activities.

(Added to NRS by 2011, 2821)—(Substituted
in revision for NRS 645H.340)

NRS 645H.710Disciplinary or other action for failure to pay money owed to
Division.In addition to any other
remedy or penalty, the Division may:

1. Refuse to issue a certificate of
registration or permit to a person who has failed to pay any money which the
person owes to the Division.

2. Refuse to renew, or suspend or revoke,
the certificate of registration or permit of a person who has failed to pay
that money.

NRS 645H.720Suspension of certificate of registration or permit for failure
to pay child support or comply with certain subpoenas or warrants;
reinstatement of certificate of registration or permit. [Effective until 2
years after the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings.]

1. If the Division receives a copy of a
court order issued pursuant to NRS 425.540
that provides for the suspension of all professional, occupational and
recreational licenses, certificates and permits issued to a holder of a
certificate of registration or permit, the Division shall deem the certificate
of registration or permit to be suspended at the end of the 30th day after the
date the court order was issued unless the Division receives a letter issued to
the holder of the certificate of registration or permit by the district
attorney or other public agency pursuant to NRS
425.550 stating that the holder of the certificate of registration or
permit has complied with the subpoena or warrant or has satisfied the arrearage
pursuant to NRS 425.560.

2. The Division shall reinstate a
certificate of registration or permit that has been suspended by a district
court pursuant to NRS 425.540 if the
Division receives a letter issued by the district attorney or other public
agency pursuant to NRS 425.550 to the
holder of the certificate of registration or permit stating that the holder of
the certificate of registration or permit has complied with the subpoena or
warrant or has satisfied the arrearage pursuant to NRS 425.560.

NRS 645H.730Knowledge of associate or employer of violation by asset
management company or asset manager; penalties.

1. Any unlawful act or violation of any of
the provisions of this chapter by any asset management company or asset manager
is not cause to suspend, revoke or deny the renewal of the certificate of
registration or permit of an asset management company or asset manager
associated with an asset management company or asset manager, unless it appears
to the satisfaction of the Division that the associate knew or should have
known thereof. A course of dealing shown to have been persistently and
consistently followed by any asset management company or asset manager
constitutes prima facie evidence of such knowledge upon the part of the
associate.

2. If it appears that a registered asset
management company knew or should have known of any unlawful act or violation
on the part of an asset manager employed by the asset management company, in
the course of his or her employment, the Division may suspend, revoke or deny
the renewal of the certificate of registration of the asset management company
and may assess a civil penalty of not more than $5,000.

3. The Division may suspend, revoke or
deny the renewal of the certificate of registration of an asset management
company and may assess a civil penalty of not more than $5,000 against the
asset management company if it appears that the asset management company has
failed to maintain adequate supervision of an asset manager associated with the
asset management company and that asset manager commits any unlawful act or
violates any provision of this chapter.

NRS 645H.740Expiration, revocation or surrender of certificate of
registration or permit does not prohibit disciplinary action against holder of
certificate of registration or permit.The
expiration or revocation of a certificate of registration or permit by
operation of law or by order or decision of the Division or a court of
competent jurisdiction or the voluntary surrender of a certificate of
registration or a permit by an asset management company or asset manager does
not:

1. Prohibit the Administrator or Division
from initiating or continuing an investigation of, or action or disciplinary
proceeding against, the asset management company or asset manager as authorized
pursuant to the provisions of this chapter or the regulations adopted pursuant
thereto; or

2. Prevent the imposition or collection of
any fine or penalty authorized pursuant to the provisions of this chapter or the
regulations adopted pursuant thereto against the asset management company or
asset manager.

1. An asset management company that is a
natural person or an asset manager shall notify the Division in writing if he
or she is convicted of, or enters a plea of guilty, guilty but mentally ill or
nolo contendere to, a felony or any offense involving moral turpitude.

2. An asset management company that is a
natural person or an asset manager shall submit the notification required by
subsection 1:

(a) Not more than 10 days after the conviction or
entry of the plea of guilty, guilty but mentally ill or nolo contendere; and

(b) When submitting an application to renew a
certificate of registration or permit issued pursuant to this chapter.

NRS 645H.760Unlawful to engage in certain conduct without certificate of
registration or permit; penalty.

1. It is unlawful for any person,
limited-liability company, partnership, association or corporation to engage in
the business of, act in the capacity of, advertise or assume to act as an asset
management company without first obtaining a certificate of registration from
the Division pursuant to NRS 645H.480.

2. It is unlawful for any asset manager to
engage in the business of asset management without first obtaining a permit
from the Division pursuant to NRS 645H.530.

3. A person who violates a provision of
this section is guilty of a misdemeanor.

1. It is unlawful for an asset management
company or an asset manager or other employee, director, officer or agent of an
asset management company to:

(a) Unless the asset management company is acting
pursuant to a court order, evict a real property owner or a tenant of a real
property owner until after the time during which the real property owner may
redeem the real property in foreclosure.

(b) Dispose of the personal property of a
homeowner or a tenant of a homeowner except as provided in NRS 645H.520.

(c) Seize real property for a client which is not
real property in foreclosure.

(d) Perform any repair, maintenance or renovation
on the real property in foreclosure:

(1) Which is required to be performed by a
person holding a license unless such repair, maintenance or renovation is done
by a person licensed in this State to perform such repair, maintenance or
renovation; or

(2) Which requires a permit or inspection
by any governmental entity in this State, unless the permit is first obtained
and the inspection is performed after completion.

(e) Conduct any activity for which a license or
permit is required pursuant to chapter 645 of
NRS without first obtaining such a license or permit.

(f) Fail to provide the disclosure form required
pursuant to NRS 113.130 for a purchaser
of a residence in foreclosure for which the asset management company or its
asset manager, employee, director, officer or agent has provided asset management.

(g) Receive, collect, hold or manage any money
which belongs to another person, including, without limitation, collecting or
managing rent from a tenant unless the person holds a permit as a property
manager pursuant to chapter 645 of NRS and is
receiving, collecting, holding or managing the money pursuant to a property
management agreement.

2. A person who violates a provision of
this section is guilty of a misdemeanor.